Egypt and the European Union have signed two financing agreements worth a combined €4.75 billion ($5.52 billion) to advance economic stability and social reforms, deepening their strategic partnership.
The agreements were signed on October 22, 2025, during the first Egypt-EU Summit in Brussels, aimed at reinforcing cooperation on political, economic, and security fronts.
The first agreement allocates €4 billion for the second phase of the Macro-Financial Assistance (MFA) program and budgetary support. The EU said the funds will help stabilize Egypt’s economy, extend debt maturities, and bridge financing gaps.
The second agreement provides €75 million to support Egypt’s socio-economic reforms, focusing on education, healthcare, water access, and livelihood improvement. Officials said the funds aim to strengthen Egypt’s human capital and enhance the quality of public services.
These new funds are part of a €7.4 billion ($8.6 billion) comprehensive partnership signed in March 2024, covering 2024–2027. According to the European Commission, the overall package includes €5 billion in concessional loans, €1.8 billion in mobilized investments, and €600 million in grants. The cooperation framework is built on six pillars, including political relations, trade, investment, and security.
In December 2024, the EU disbursed €1 billion under the first phase of short-term macro-financial assistance.
The EU was Egypt’s largest trading partner in 2024, accounting for 22% of total trade, worth €32.5 billion—with €12.6 billion in imports and €19.9 billion in exports, according to EU data.
At the Brussels summit, the EU also announced several sectoral financing commitments, including: €110.5 million for technical and vocational training, €50 million for green transition and renewable energy, and €200 million for migration-related projects, with implementation expected between 2025 and 2026.
Cc: This article was initially published in French by Lydie Mobio
Adapted in English by Ange Jason Quenum
